Author Question: In theory, when a local government receives a grant to finance a certain type of expenditure, it ... (Read 54 times)

folubunmi · **on:** Jul 1, 2018

In theory, when a local government receives a grant to finance a certain type of expenditure, it should spend more if the grant _____.

a. is a matching grant rather than a categorical grant
b. is a categorical grant rather than a matching grant
c. is a general grant rather than a matching grant
d. is a categorical grant rather than a matching grant

Question 2

The tax with the minimum excess burden of taxation is most desirable from an efficiency standpoint because _____.

a. it suggest that people substituted away from the tax by a considerable amount
b. it minimizes tax shifting
c. it produces the least social cost per dollar of revenue raised
d. it will raise the most revenue for government